The 10 Certainties of the Evolving Consumer Landscape

1. This is …YourMoment!Tom Peters/ARDA/Crystal Ball Luncheon/04.14.2002

2. All Slides Available at …tompeters.comNote: Lavender text in this file is a link.

3. 10Certainties.

4. 1. It’s a WOMAN’s World. (Period.)

5. ?????????Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)Houses … 91%Consumer Electronics … 51% Cars … 60% (90%)Allconsumerpurchases … 83%Bank Account … 89%Health Care … 80%

6. 2/3rds working women/50+% working wives > 50%80% checks61% bills53% stock (mutual fund boom)43% > $500K95% financial decisions/ 29% single handed

7. FemaleThink/ Popcorn“Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons.”“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.”

8. Read This Book …EVEolution: The Eight Truths of Marketing to WomenFaith Popcorn & Lys Marigold

9. EVEolution: Truth No. 1Connecting Your Female Consumers to Each Other Connects Them to Your Brand

10. “Women don’t buy brands. They join them.”EVEolution

11. Stupid: “Amazing, now that I think about it. A bunch of guys --developers, architects, contractors--sitting around designing shopping centers. And the ‘end users’ will be overwhelmingly women!”

12. 2. It’s BOOMER World. (Period.)

13. “ ‘Age Power’ will rule the 21st century, and we are woefully unprepared.”Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old

14. “NOT ACTING THEIR AGE: As Baby Boomers Zoom into Retirement, Will America Ever Be the Same?”USN&WR Cover/06.01

15. 50+$7T wealth (70%)/$2T annual income50% all discretionary spending79% own homes/40M credit card users41% new cars/48% luxury$610B healthcare spending/74% prescription drugs5% of advertising targetsKen Dychtwald, Age Power: How the 21stCentury Will Be Ruled by the New Old

16. 3. It’s an EXPERIENCES World.

17. “Experiencesare as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

18. Experience: “Rebel Lifestyle!”“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”Harley exec, quoted in Results-Based Leadership

19. Westin’s … Heavenly Bed

20. 4. It’s a BRAND World.

21. “WHO ARE WE?”

22. “WHAT’S OUR STORY?”

23. “EXACTLY HOW ARE WE DRAMATICALLYDIFFERENT?”

24. 1st Law Mktg Physics: OVERTBENEFIT(Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion)2ND Law: REALREASONTOBELIEVE(Stand & Deliver!)3RD Law: DRAMATICDIFFERENCE(Execs Don’t Get It: See the next slide.)Source: Jump Start Your Business Brain, Doug Hall

25. 2 Questions:“How likely are you to purchase this new product or service?”(95% to 100% weighting by execs)“How unique is this new product or service?”(0% to 5%*)*No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain

26. DO THE HOUSEKEEPERS & CLERKS “BUY IT”?[ARE YOU V-E-R-Y SURE?]

27. “WHY DOES IT MATTER TO THE CLIENT?”

28. “EXACTLY HOW DO I PASSIONATELYCONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ?”

29. 5. It’s an IS/IT World.

30. “There’s no use trying,” said Alice. “One can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.”Lewis Carroll

31. I’net …… allows you to dream dreams you could never have dreamed before!

32. 6. It’s a TALENT World.

33. Message: Some people are better than other people.Some people are a helluva lot better than other people.

34. Model 25/8/53: Sports Franchise GM

35. 7. It’s a CREATOR’s World.

36. “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.”Leading Insurance Industry Analyst

37. SWA > American + Continental + Delta + Northwest + United + USAirways.Source: Boston Globe (12.22.2001)

38. Getting Beyond Lip Service!“No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO, Farmers Group

39. “Our mission is to go from being the world’s premier timeshare—which is a large idea in a small industry—to being what we call the market makers for global travel and leisure. … We need to enable developers to be involved in more travel and leisure products, rather than just the timeshare side.”—Ken May, RCI (Source: Developments)

40. “VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will transform the real estate market by turning those REITs into national brands. … Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.” –New York Times (12.16.2001)

41. The Big Day!

42. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!

43. “These days, building the best server isn’t enough. That’s the price of entry.”Ann Livermore, Hewlett-Packard

44. Gerstner’s IBM: Systems Integrator of choice. (BW/12.01). Global Services: $35B. Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products.

45. 8. It’s a FREAK’s World.

46. Forget>“Learn”“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”Dee Hock

47. “Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec

48. Sam’s Secret #1!

49. The greatest dangerfor most of usis not that our aim istoo highand we miss it,but that it istoo lowand we reach it.Michelangelo

50. 9. It’s a JUGGLER’s World.